This Week in Pricing > 9/23/17

pricingnews-WeeklyThis Week in Pricing is a recap of the week’s best pricing focused news, strategy expert and technology leader’s thought leadership, industry news and events, and resources for pricing professionals.

This Edition is brought to you by: PPS Logo

 

 

 

Professional Pricing Society

Currently, PPS produces three major annual pricing conferences in Europe and North America. Each conference also houses a technology hall where sponsors display the latest in Pricing Solutions software. PPS also offers more than two dozen, full-day training workshops every year, taught by leaders in the pricing community. These workshops serve as the foundation for PPS’s Certified Pricing Professional (CPP) designation, our state of the art pricing certification program. Candidates may be certified after mastering a multi-stage curriculum followed by rigorous testing. Successful CPPs have acquired the core knowledge which not only places them in the top rungs of the pricing field, but also gives them the tools to enhance substantially their own careers.

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Top Headlines

The Psychology Behind the New iPhone’s Four-Digit Price | Harvard Business Review

The Psychology Behind the New iPhone’s Four-Digit Price | Harvard Business Review

Apple made headlines by announcing that the price for its new iPhone X (a fancy term for 10) will range from $999 to $1,149. These prices are commanding attention because they are significantly higher than the base prices of the two other iPhone models that were also announced, the 8 ($699) and the 8 Plus ($799). […]

 

Address fundamental flaws in fuel pricing | Business Line

Address fundamental flaws in fuel pricing | Business Line

Pricing mechanism flaw First, the pricing mechanism. While the daily frequency of price change is fine, the methodology of the pricing mechanism is not. In India, the prices of petrol and diesel are not determined by the actual costs incurred by refiners on crude oil sourcing, refining and marketing and allowing for profits. Rather, a […]

 

Oracle introduces new cloud pricing models with further glance at beating AWS | Cloud Tech News

Oracle introduces new cloud pricing models with further glance at beating AWS | Cloud Tech News

Oracle OpenWorld may still be a couple of weeks away, but Larry Ellison gave a glimpse of what to expect in San Francisco with the announcement of new licensing and pricing structures – promising to beat Amazon by at least 50% on cost. Ellison, Oracle’s CTO, took to the stage to not only discuss the […]

 

Post-Irma: When do high air fares become price gouging? | mjAJC

Post-Irma: When do high air fares become price gouging? | mjAJC

When evacuees from Florida expressed shock at sky-high air fares for last-minute trips and accused airlines of price gouging, some frequent business travelers reacted with knowing bemusement. “Overall, last-minute prices were in the same ballpark as a business traveler would pay,” said Patrick Surry, chief data scientist at Hopper, an air travel app. Last-minute air […]

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United Airlines Just Admitted That Its Sub-Cattle Class Isn’t Working So Well (American Seems to Like It) | Inc.com

United Airlines Just Admitted That Its Sub-Cattle Class Isn’t Working So Well (American Seems to Like It) | Inc.com

For airlines, good ideas often revolve around the idea of making money. Recently, then, both United Airlines and American Airlines thought they’d try something that they thought would be a hit. This was the notion of offering (allegedly) cheaper fares, while at the same time taking away what used to be basic privileges, like having […]

 

1 Bizarre Excerpt From Fortune’s Interview With Apple CEO Tim Cook | The Motley Fool

1 Bizarre Excerpt From Fortune’s Interview With Apple CEO Tim Cook | The Motley Fool

Cook gets defensive on premium pricing and profits Lashinsky asks Cook about Apple’s strategy of making “premium-priced, high-margin, high-end products,” to which Cook responds: Well it’s not high margin. I wouldn’t use that word. There’s a lot of companies that have much higher margins. We price for the value of our products. And we try […]

 

Apple’s 4K Content Pricing Strategy is a Very Smart Move | ExtremeTech

Apple’s 4K Content Pricing Strategy is a Very Smart Move | ExtremeTech

At its launch event yesterday, Apple announced a bold new strategy that could give it a leadership position in a critical market. Marketing professionals and executives from other companies were left looking foolish by comparison and they’ll undoubtedly scramble to keep up with the Cupertino-based company. I’m speaking, of course, about Apple’s new 4K content […]

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iPhone X puts exclamation point on Apple’s pricing strategy | ABC News

iPhone X puts exclamation point on Apple’s pricing strategy | ABC News

Apple has made a luxury iPhone that punctuates its technological swagger with a high-priced exclamation point. And that exclamation point appears to be a sign of things to come. The long-anticipated iPhone X unveiled Tuesday will sell for $999, double what the original iPhone cost a decade ago and more than any other competing device […]

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Amazon Whole Foods Price Cuts Increased Foot Traffic | Refinery29

Amazon Whole Foods Price Cuts Increased Foot Traffic | Refinery29

Amazon’s plan to make Whole Foods more affordable is working. According to Business Insider, the supermarket chain that was once maligned for its high prices saw a 25% increase in foot traffic after prices were slashed last month. Some cities, like Chicago, saw an even greater increase of 35%. Food & Wine reports that Foursquare […]

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Irma price gouging highlights sad truth: Consumer fleecing is the new normal | WTOP

Irma price gouging highlights sad truth: Consumer fleecing is the new normal | WTOP

(THE CONVERSATION) Since Hurricane Irma put Florida in its sights, there have been thousands of reports of price gouging on everything from water to gasoline. The most notable complaint was not, however, the one alleging a US$72 charge for a six-pack of water. Rather, it was the $3,200 reportedly asked by Delta for a ticket […]

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More Headlines

Fluctuating fuel price affects vegetable pricing | Times of India

Fluctuating fuel price affects vegetable pricing | Times of India

Kolhapur: The traders in the city believe that a constant change in fuel prices is contributing to an exorbitant rise in the prices of food grains, pulses and vegetables. For the last two months, the dynamic pricing of fuel is being implemented by the petrol pump operators. The fuel prices are modified on a daily […]

 

Minister hints at sugar imports for stable prices | Money Life

Minister hints at sugar imports for stable prices | Money Life

Union Food Minister Ram Vilas Paswan on Wednesday said the government may consider allowing sugar imports if prices go up during this festive season. “We do not want sugar prices to increase during the festive season. We will do (import) it, if the need arises. We want to keep the prices stable. However, there is […]

 

Amazon Web Services shakes up cloud pricing with per-second billing |Hi Tech Beacon

Amazon Web Services shakes up cloud pricing with per-second billing |Hi Tech Beacon

Amazon Web Services customers will soon pay for their elastic cloud compute (EC2) Linux instances and elastic block store (EBS) volumes by the second instead of by the hour, the company announced today. AWS has offered per-hour billing since launching services in 2006. Per second billing for all new and existing Linux instances on EC2 […]

 

Grocery and the Need for Speed | Progressive Grocer

Grocery and the Need for Speed | Progressive Grocer

The future of grocery belongs to the fast. That’s arguably the biggest takeaway from Xcelerate Retail 2017, a technology conference held by Symphony Retail Solutions, a division of Symphony Technology Group, which took place Sept. 12-14 in Las Vegas. And while other essentials critical for success also were shared – from increased focus on customer-centricity […]

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Allscripts launches Prescription Price Transparency initiative Strengthened by strategic partnerships, company aims to deliver real-time information on prescription affordability | Markets Insider

Allscripts launches Prescription Price Transparency initiative Strengthened by strategic partnerships, company aims to deliver real-time information on prescription affordability | Markets Insider

Allscripts Real-Time Health System (RTHS) is launching a journey toward next-level patient care. The conceptual initiative aims to work with partner companies to enable technology that will deliver real-time information on: The medication price from the health plan or pharmacy benefit manager (PBM) The cash price What alternative therapies and their cost Competitive prices at […]

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Macy’s Strategic Efforts Bode Well, Stock up 12% in a Month | Zacks.com

Macy’s Strategic Efforts Bode Well, Stock up 12% in a Month | Zacks.com

Hidden Catalyst We believe that the Zacks Rank #3 (Hold) company’s sustained focus on price optimization, inventory management, merchandise planning, and private label offering are the primary catalysts, facilitating in meeting customer-oriented demand as well as improving in-store shopping experience. In an attempt to increase sales, profitability and cash flows, the company has been taking […]

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Local home prices still struggling to recover from housing crash | bakersfield.com

Local home prices still struggling to recover from housing crash | bakersfield.com

There’s no question that when the real estate bubble burst in 2007 and home prices throughout much of the nation crashed, millions of family homes lost billions of dollars in value. The Great Recession soon followed. Not only have home prices in Bakersfield not fully recovered from the declines suffered during that national crisis, Bakersfield […]

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Pricing The Past: Inside A Metairie Tag Sale | WWNO

Pricing The Past: Inside A Metairie Tag Sale | WWNO

Moreau says that one of the biggest conflicts that comes up in her work is that the older generation saves a lifetime of belongings that they assume their children will gladly inherit, only to find out that social morés have shifted, and the younger generation would prefer not to take on a houseful of heirlooms. […]

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CBA: Most Australian retailers don’t have a strategy for Amazon | Business Insider

CBA: Most Australian retailers don’t have a strategy for Amazon | Business Insider

The Commonwealth Bank’s latest Retail Insights research suggests almost 70% of people likely to purchase from the online platform. But most retailers (78%) don’t have a strategy to combat the global retail giant. “It seems Australian shoppers are ready for Amazon but many of our retailers are still at the drawing board,” Commonwealth Bank National […]

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Parsons Green Explosion: Uber Surge Pricing Began, But Company Will Refund Users | International Business Times

Parsons Green Explosion: Uber Surge Pricing Began, But Company Will Refund Users | International Business Times

Some U.K. Uber users complained on social media about price surges during the attack at Parsons Green station in London on Friday. However, the company quickly turned off the increase in prices and promised users in the affected area a refund. … Its worth noting that one of the tweets was from a person going […]

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GST on fuel can help rein in prices | Business Standard News

GST on fuel can help rein in prices | Business Standard News

The petroleum ministry’s push for including crude oil, natural gas, petrol, diesel and aviation turbine fuel in the goods and services tax (GST) may bring benefits to the industry as well as customers at a time of rising retail prices. However, much of the benefits will depend on the GST rates applicable on fuel. The […]

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Amazon and Netflix look to India for subscriber growth | Business Insider

Amazon and Netflix look to India for subscriber growth | Business Insider

Amazon’s India video push can meaningfully grow Prime membership. More than half of new Prime members come through Amazon’s video service, according to James Farrell, the company’s head of video in the Asia-Pacific region. Additionally, the company’s localized pricing strategy — Prime membership in India costs less than $10 per year — is likely to entice […]

 

Rebundled ancillary makes a come back at easyJet and Delta | EyeforTravel

Rebundled ancillary makes a come back at easyJet and Delta | EyeforTravel

‘Ancillary’ revenue is, of course, a growing portion of airline revenue. Some airlines are even reporting more than 40% of their revenue from ‘ancillary’ services, which generally refer to the new ala carte pricing where checked bags, seat assignments, on board food and other elements are often no longer included in the basic fare. Instead, […]

 

Vacation rental company celebrates 13 years by surprising loyal guest | Atascadero News Leader

Vacation rental company celebrates 13 years by surprising loyal guest | Atascadero News Leader

Paso Robles Vacation Rentals views the relationships they have with the home owners as in an integral part of providing quality homes to guests visiting the Paso Robles area. “We partner with our owners to showcase Paso Robles hospitality, we work together to ensure the best outcome. It’s always about the win-win.” Bryan Bonelli enjoys […]

 

Cornerstone University changes pricing for more accessibility | MLive.com

Cornerstone University changes pricing for more accessibility | MLive.com

GRAND RAPIDS, MI – Cornerstone University officials announced a three-pronged pricing restructure plan for traditional undergraduate students, including a one-year net tuition freeze next academic year for returning students. “We are constantly looking for ways to reduce costs to our students while preserving a sustainable, high quality academic experience in an educational environment where our […]

 

Smart parking could mean tricky new pricing, data models for cities | statescoop

Smart parking could mean tricky new pricing, data models for cities | statescoop

New research suggests smart parking meters may do more than decongest streets, but be a potential money maker for cities collecting fines and fees. Research firm IDC reports that smart parking technology that uses sensors or video to relay parking occupancy has potential to be a revenue generator as it alerts parking enforcement about violations and generates […]

 

Brand behaviour affects purchase for 100m ‘corpsumers’ | WARC

Brand behaviour affects purchase for 100m ‘corpsumers’ | WARC

In the U.S., brands have found themselves front and centre in some of this year’s most significant news, and their conduct is more visible than ever. In the wake of Hurricanes Harvey and Irma last week, companies have been pledging to support the affected regions. However, other brands have come in for intense criticism as […]

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Ontario minimum-wage hike could cost more than 50,000 jobs: watchdog | The Globe and Mail

Ontario minimum-wage hike could cost more than 50,000 jobs: watchdog | The Globe and Mail

Asked how businesses could prepare, Flynn suggested they will have to find ways to absorb the increase. “Well, I think they could look at pricing, obviously that’s one thing that obviously any business would do,” he said. Progressive Conservative Leader Patrick Brown said those comments can only mean one thing; the government expects businesses will […]

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NJ Apple Stores need better price tags, state says | app.com

NJ Apple Stores need better price tags, state says | app.com

Listing prices for iPads, iPhones, MacBooks and other electronics on digital screens at Apple Stores around the state is not good enough, the state’s consumer watchdog said Tuesday. Apple has agreed to list prices on “pricing wedges” on each table where devices are offered for sale, according to the state Attorney General’s office. The agreement […]

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Spanish hegemony in organic greenhouse vegetables | Fresh Plaza

Spanish hegemony in organic greenhouse vegetables | Fresh Plaza

“Price-wise, growing is much more efficient in Spain,” Job mentions. “When push comes to shove, price is of overriding importance more often than the country of origin for large retailers, except for local organic shops.” Job emphasises that, as long as the quality of the Spanish product isn’t inferior to the Dutch, Spain will quickly […]

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Is pricing a piece of cake or are you risking a soggy bottom line? | The Drum

Is pricing a piece of cake or are you risking a soggy bottom line? | The Drum

Generating profit is a pretty straightforward recipe – the key ingredients of profit, as we know, are price, volume and cost. Sadly, while the recipe is quite simple, putting the right amount of each ingredient into your mixing bowl is usually where the problems creep in and can leave you with a soggy bottom line. […]

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Xcel’s rates have risen but are still below state’s average | amarillo.com

Xcel’s rates have risen but are still below state’s average | amarillo.com

Higher bills from Xcel Energy, which has a monopoly on Texas Panhandle homes and powers most area businesses, are a result of costly technological upgrades, spokesman Wes Reeves said. The average residential bill has increased 19.8 percent per kilowatt-hour since 2006. Fluctuations in fuel pricing, particularly natural gas, typically impact deregulated energy providers more heavily […]

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Study: Digital now influences more than half of grocery sales | Food Dive

Study: Digital now influences more than half of grocery sales | Food Dive

The payoff to capture digital consumers can be huge. Deloitte found that consumers who embrace digital options — whether e-coupons, on-demand local delivery or mobile checkout — convert 9% more often than those who don’t use digital in the lead-up to their purchase decision. Kroger is one leading grocer that consistently reports gains in new digital […]

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iPhone X Puts Exclamation Point on Apple’s Pricing Strategy | Billboard

iPhone X Puts Exclamation Point on Apple’s Pricing Strategy | Billboard

Apple has made a luxury iPhone that punctuates its technological swagger with a high-priced exclamation point. And that exclamation point appears to be a sign of things to come. The long-anticipated iPhone X unveiled Tuesday will sell for $999, double what the original iPhone cost a decade ago and more than any other competing device […]

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Apple Inc (AAPL) Stock Is Down, But Wall Street Remains Bullish. Time To Buy Now? | amigobulls

Apple Inc (AAPL) Stock Is Down, But Wall Street Remains Bullish. Time To Buy Now? | amigobulls

The recently held mega launch event at the Steve Jobs theater has failed to provide an immediate boost to Apple Inc (NASDAQ:AAPL) stock. In fact, shares of the Cupertino based tech giant have been trending lower since the event. This is in spite of the fact that the launch event received favorable commentary from Wall Street. […]

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China’s Huawei is making smartphones more accessible for Kenyans | Techwire Asia

China’s Huawei is making smartphones more accessible for Kenyans | Techwire Asia

HUAWEI TECHNOLOGIES, the biggest smartphone maker by market share in China, is deepening its strategy to capture the Kenyan market by introducing niche smartphone options that is aimed at boosting the company’s presence ahead of their competitors. According to Derek Du, who runs Huawei’s Africa operations, the smartphone maker will be offering Kenyans a range […]

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Amazon, Apple, Alphabet: Their Next $500 Billion Market – Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha

Amazon, Apple, Alphabet: Their Next $500 Billion Market – Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha

Summary Amazon may be preparing new TV boxes of its own, in response to Apple. Others have confirmed my analysis that Amazon is the fastest growing in the segment, and outselling Apple as much as 3:1. Google poses an increasing challenge, with a unique and potentially very effective pricing strategy. The market is extremely important […]

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Moody’s investigates effects of smart beta ETF price war | ETF Strategy

The ongoing price war in smart beta ETF fees has the potential to negatively impact the credit ratings of traditional active asset managers as well as smart beta ETF providers, according to credit rating agency Moody’s. Goldman Sachs will join providers Vanguard, BlackRock and Charles Schwab by offering a smart beta ETF for less than […]

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Rising tuition fees could price out college students | tes

Rising tuition fees could price out college students | tes

The report points out that delivery costs for HE in FE are often less than in university settings. But colleges which took part in the inquiry said they were looking at increasing their tuition fees. Truro and Penwith College told the commission it was “moving to a full fee rate from 2017-18”, while NCG – the […]

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Featured Content and Events

Certification: Certified Pricing Professional (CPP)

Certification: Certified Pricing Professional (CPP)

The Certified Pricing Professional (CPP) designation is the standard for advanced knowledge and expertise in the field of Pricing. Since 2003, over 900 individuals have taken courses in pricing through Professional Pricing Society and pass their exam to earn the CPP designation. The CPP indicates knowledge and skill in pricing across industries. We also offer the industry standard professional pricing certification via and live Workshops hosted during our conferences around the world. We can help you develop a personal pricing education roadmap to give you the exact tools your need based on your industry and professional background.

 

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Date: October 24-27, 2017

Location: Hilton San Diego Bayfront in San Diego, California

Hear from our President, Kevin Mitchell, give insight on the conferences we offer.  Please make plans to join us and well over 500 of your peers for the best event anywhere as we discuss Data, Change Management and the Profit Landscape. Don’t miss out on the Early Bird Discount (Buy 2 Get 1 Free). It expires September 15th!

CONFERENCE HIGHLIGHTS

  • 12 Certified Pricing Professional Workshops
  • 4 Breakout Tracks
  • Over 40 Speakers
  • 2 Full Conference Days
  • Over 100 Hours of Networking

 

DigitalPricingSummit_300x250

Conference: Digital Pricing Summit | IQPC

Pricing transformation through digital disruption.

DIGITAL TRANSFORMATION AND E-COMMERCE | DIGITAL PRICING STRATEGIES FOR B2C | E-COMMERCE PRICING IN THE B2B CONTEXT | VALUE CREATION AND CHANNEL MANAGEMENT | DIGITAL SUBSCRIPTIONS AND PAYMENTS | REVENUE MANAGEMENT & COMMERCIAL EXCELLENCE

  • Understand how digitalisation and online services are changing the future of commerce
  • Develop superior pricing strategies in the highly competitive B2C space
  • Explore how digital transformation and ecommerce are interdependent in the B2B context
  • Value creation, communication, managing partners and channel conflict
  • Leverage margin enhancement in digital subscriptions and leveraging digital payment platforms
  • Identify revenue management and commercial strategies for pricing excellence
  • Learn about setting up ecommerce platforms, subscriptions, data analytics and applications for pricing excellence.


The following is a daily-dose of pricing cartoons and quotes, enjoy…

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“Pricing is the only element in the marketing mix that produces revenue; the other elements produce costs.

     – Phillip Kotler

 


 

Pricing Resources

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